R. Subhash Reddy, J.

1. This Bench is constituted to answer the reference made in the above M.A.C.M.As. M.A.C.M.A.No.364 of 2010 is filed by the claimant seeking enhancement of compensation awarded by the Chairman, Motor Vehicles Accidents Claims Tribunal-cum-District Judge, Guntur, whereas, M.A.C.M.A.No.1020 of 2010 is filed by the National Insurance Company Limited, questioning the very award of compensation itself. For the purpose of this reference, we take the facts as narrated in M.A.C.M.A.No.364 of 2010.

2. The deceased Gangaraju Venkata Sudheer, who is the brother of the claimant, was aged about 22 years and was prosecuting his final year Medicine at BLD Medical College, Beejapur of Karnataka State. The appellant/claimant is working as Assistant Professor in Gynaecology at Government hospital, Guntur. On 29.11.2000, while the claimant, her husband, daughter, mother, maternal aunt and deceased were proceeding in Maruti car bearing No.AP-07-3173 from Tirupati to Guntur, they met with an accident. It was the case of the claimant that the Lorry bearing No.AAN-6579, came on wrong side in the opposite direction at a high speed and in a rash and negligent manner and dashed against their Maruti car. Consequently, the brother and the mother of the claimant received grievous injuries and died on the spot and the claimant, her husband and maternal aunt suffered injuries. Based on the complaint lodged by them, a case was registered at P.S. Singarayakonda. By impleading the owner of the lorry as respondent No.1 and the Insurance Company as respondent No.2, claim was made by filing M.V.O.P.No.159 of 2002 under Section 166 of the Motor Vehicles Act, for compensation of Rs.20,00,000/-.

3. The owner of the Lorry remained ex-parte and the Insurance Company contested the claim by filing counter affidavit. In the O.P., the Tribunal, by recording a finding that the accident had occurred due to rash and negligent driving of Lorry bearing No.AAN-6579, has allowed the claim petition by awarding compensation of Rs.8,75,000/-. It was the specific case of the claimant that for the purpose of tuition fee of the deceased, she obtained loan from A.P.Mahesh Co-operative Urban Bank Ltd., Hyderabad and was educating her deceased brother. On behalf of claimant, the certificate issued by the Medical college showing the fee paid for the deceased and also the notices demanding the payment of balance outstanding amount of loan, issued by A.P.Mahesh Co-operative Bank were exhibited.

4. Seeking enhancement of compensation awarded by the Tribunal, the claimant has filed M.A.C.M.A.No.364 of 2010, whereas, questioning the award of compensation, the Insurance Company has filed M.A.C.M.A.No.1020 of 2010. It was the case of the Insurance Company that the claimant was not dependant on the deceased, as such, she is not entitled for compensation under Section 166 of the Motor Vehicles Act.

5. When the matters have come up before the Division Bench, in view of conflicting opinions rendered earlier by 2 different Division Benches in the case of Oriental Insurance Co. Ltd. v. P. Satyavathamma, 2010 (3) ALT 433 and in Vanguard Insurance Co. Ltd. v. Chellu Hanumantha Rao, 1975 ACJ 344, the Division Bench has referred the matters to the Full Bench, for answering the following question:

“Whether non-dependant heir of the deceased who died in a motor accident is entitled to lay claim for compensation under section 166 of the Motor Vehicles Act, 1988 where there is no other dependant legal heir claiming compensation?”

In view of the general importance of the question referred, this Court has requested learned counsel Sri Kota Subba Rao and Sri E. Venugopal Reddy, to assist this Court as amicus curiae.

6. Heard Sri T.Mahender Rao, learned counsel for claimant and Sri Nisaruddin Ahmed Jeddy, learned counsel appearing for National Insurance Co. Ltd., and also the learned amicus curiae – Sri Kota Subba Rao and Sri E.Venugopal Reddy.

7. Prior to the enactment of the Motor Vehicles